We examine the relation between the proportion of a firm’s top management team that is appointed during a CEO’s tenure (i.e., top management team, or TMT, co-option) and audit pricing. Using a sample of U.S. firms during the 2001-2018 period, we find that TMT co-option is positively...

We advance understanding of earnings announcement returns and post-earnings announcement returns (PEAR) with a model that combines limited attention (Hirshleifer and Teoh, 2003) and salience (Bordalo, Gennaioli, and Shleifer, 2012). By including salience effect bias, our model predicts stronger...

We examine whether and how firm-level perceived idiosyncratic political risk affects their mergers and acquisitions (M&A) decisions. We find that firms exposed to a high level of perceived political risk are less likely to conduct M&As. Furthermore, the negative association between firm-level...

In an era when new ideas are brought to the market by global value networks of specialists rather than by one company, a key question is who captures the most value from innovation in such a structure, and why? This paper addresses the question of who benefits from innovation in global value...

In today’s global electronics industry, innovation is carried out by various value chain participants, including brand-name manufacturers (sometimes called lead firms), contract manufacturers, and component suppliers, but there is little understanding of who benefits most from innovation in...